10 December, 2013: The payday loan market has seen activity reach a boom in recent years; in the UK alone, the market has exploded, going from a mere 200,000 people applying for loans in 2007 to now, over 2 million people a year applying for loans.
Despite criticism from the UK press, for payday loans’ reputation for both their high interest and quick acceptance of applications from those with spotty or poor credit histories, the payday loan business is booming.
The sector has seen an influx of lenders from the U.S as well as existing short term loans companies. As a billion pound industry, the getting is good, and many companies have emerged out of the fertile soil. One of the largest US payday lenders, Dollar Financial, bought up the The Money Shop brand. As opportunities grow so do large scale mergers and buy-ups; and the business world is paying attention.
James Luis managing www.MyPaydayLender.co.uk explains;
“Payday loans have never been so in demand. People are asking for them. What is there? What, despite the less than stellar publicity, are people continuing to use payday loans in increasing numbers?”
One argument is the level of credit people are used to, it once was as easy as filling out your name and address to get whatever credit you wanted. Credit used to be exceptionally easy to obtain. Now it is less so, and hence, many people are using supplemental loans in order to fill in the gaps.
“Applications are on the rise as Britons’ flock to payday loan sites online. Living off of credit is not a new thing; Britain has been going this route long before payday sites, but these shorter-term applications are taking up the space where more free-flow credit was once issued.” Mr. Luis adds.
Payday loan services are popular amongst those that have been refused by lenders and are looking for a no- hassle solution to getting an online loan approved for them, and those with the best rates and most flexible options come out strong, as reflected in the numbers.
James Luis has another explanation for the recent payday loan boom; “Payday loans are being considered as an alternative to larger credit loans.”
My Payday Lender is a 100% free online loan matching service that searches a panel of UK lenders, then tailoring a loan specific to borrowers needs.